GOING FORWARD THE ABSORPTION RATE WILL BE RELEASED ON A BI-MONTHLY BASIS ON THE 1ST & 15TH OF THE MONTH.
 

Summary: BUYERS MARKET

Last Wk=Change in Months Of Inventory From Last Week's Report. Last Mn= Change in Months Of Inventory From 4 Weeks Ago Report. Red #s mean the supply is rising, which is bad for Sellers and Green #s mean that the supply is falling which is good for Sellers.

UC=Number Homes Under Contract in Last 30 days Avg MT=Average Market Time of UC Homes Median=Median List Price For UC Homes Listed=Number of Homes Listed in MLS Avg MT=Average Market Time of Listed Homes Mon Inv=Months To Sell Entire Inventory of Homes, the AR Rate

For an explanation of the AR Rate, please read this post.

My favorite real estate writer in the Chicago Tribune, Mary Umberger, put out an article about the impact of foreclosures on renters in the Chicagoland area. Unfortunately, tenants can be unwitting victims when the home they are renting goes into foreclosure.

Now it's also waging battle with the "shadow market" of investors and other homeowners who can't sell their properties, so they're renting them out. Watch out, the council warns, in case that landlord gets into financial trouble and you find yourself residing in a foreclosure.

The trade group has produced a brochure that its members can offer would-be tenants, warning that nearly 40 percent of all foreclosures involve houses or condos that have been rented out by their owners, a statistic from RealtyTrac, a foreclosure-data firm. The landlords' group warns that a tenant's security deposit might be at risk in the tumult, not to mention the possibility of being forced to move on short notice.

I witness this alot when I'm out visiting distressed homeowners in Will, Kendall, & Grundy County, IL on behalf of my foreclosure relief service, Stop Foreclosure Illinois. I will knock on a door, and instead of meeting a homeowner, I'll run into an angry tenant. Most of them will already be aware of the process, as a Sheriff will have attempted to serve the homeowner at that address.

These tenants do have some recourse, but unfortunately as the article points out "it's not a tremendous help".

This article from the Chicago Tribune does a great job of presenting a realistic view of purchasing Auction properties. As the article's title states: "lack of bargains closes door on beginners and the faint hearted". Give it a read.

No matter what community I take buyers to visit, one thing I am certain to hear is that the taxes are too high. It appears that Will County is looking to relieve a little of that tax burden and cut the county portion of the property tax bill.

If the full board votes for this change in the budget, the average taxpayer should see a $40 to $50 decrease in the county's portion of next year's tax bill.

"We're giving back some money, and I think that's what (county residents) are looking for right now," said board member Chuck Maher, R-Naperville.

Read the entire article here in the Naperville Sun.

It's always an honor when you are recognized by an industry peer. I would like to express my appreciation to Matt DiChiara of MyNewPlace Blog for selecting my article about Bankruptcy Protection for residential mortgages as a winner of the Carnival of Real Estate.

You can check out the other 5 winning articles at MyNewPlace Blog, Carnival of Real Estate #110.

Summary: BUYERS MARKET

Last Wk=Change in Months Of Inventory From Last Week's Report. Last Mn= Change in Months Of Inventory From 4 Weeks Ago Report. Red #s mean the supply is rising, which is bad for Sellers and Green #s mean that the supply is falling which is good for Sellers.

UC=Number Homes Under Contract in Last 30 days Avg MT=Average Market Time of UC Homes Median=Median List Price For UC Homes Listed=Number of Homes Listed in MLS Avg MT=Average Market Time of Listed Homes Mon Inv=Months To Sell Entire Inventory of Homes, the AR Rate

For an explanation of the AR Rate, please read this post.

In my last post, I detailed the provisions of the Emergency Economic Stabilization Act of 2008 that impact housing. If you read that post, you may have presumed from my tone that I am not overjoyed with the those provisions (even though I believe that the bill will be a net benefit to my business as a Realtor).  So let me spell out a few of my concerns:

1. Will the Fed's ability to reset loan balances, in effect, reset property values?: The bill calls for the Secretary of Treasury to have the ability to modify mortgages, in the name of stopping or PREVENTING foreclosure, by "principal write downs" or lowering the mortgage balance owed. How is this going to be implemented. If the mortgage balance is $300,000 and the property value is $250,000, but you the home owner can only afford a mortgage of $200,000, is the new mortgage principal going to be $250K, $200K, or somewhere in between? Common sense would dictate that the mortgage would reflect the current property value of $250K. But the Feds goal is to preserve homeownership, not to preserve property value.Might there be pressure to create a property value in line with the homeowner's ability to pay. A perverse opposite world where as appraisers were once pressured to make appraisals meet loan requests, are they now pressured to lower appraisals to meet what homeowners can afford? I would like to say no, but I have no faith in the government's ability as property/loan manager.
2. What is the motivation to make your mortgage payment if your home value is under water?Most people will continue to honor there debt on a home, car, or other asset even if that asset is now worth less than what they owe. Most anyone who has ever bought and financed a new car has had that sinking feeling driving off the lot that their new car was worth 20% or 30% less than what it was an hour before when they signed the deal. I know that I certainly have had that feeling. Do we not think that someone who owns a $300,000 mortgage but a $200,000 house, is not going to be very tempted to ask for relief. Just look at the amount of "walk away" foreclosures that have sprung up across the country. As a Realtor, I cannot advise someone to not honor a valid debt they have, but I certainly will expect people to "drive their home back on the lot" and ask for a renegotiation.

Now that the bill has been defeated in the House, I'll wait to see how it is remade and represented. I'll keep you informed.